The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1887-07-15
Bu,ldtnx ana Lo.n Ax.oc,.t,on..

Building ana Loan Associations.
As its readers know the GRAPHIC has
periodically agitated the subject of
building and loan association for Kim
ball. In answer to many inquiries as to
the workings Of such associations we
publish below the plar of the Aberdeen
association as outlined by its circulars:
You pay in two dollars on each share
on the first day of every month, and at
any time you may wish it you can draw
out the amount you have paid in. to-
gether with six per cent. per annum on
it, masking it a good way to save up odd
change. Or, should you wish to borrow
from the association to build with, you
can get 5000 dollars on each share of
stock you have, but you must first own
the lot clear of incumbrance on which
yon build, the association taking first
mortgage on the lot drawing six per
cent. ger annum interest for the amount
you borrow aud IS one member is as
much entitled to loan as another. the
money is sold at auction to the member
who will pay the highest bonus.
Suppose you wish to borrow 5000 it
would figure out something like this
Three shares Of stock at SO per month,
s6. Interest on $500 for one month at
six per cent, 50. And we will say you
bid 81 per month bonus for each 800
you borrow. that would be SO. Making
total monthly payment of SIS, which
amount you will have to pay on the first
day of each month until such time as the
amount paid in on each share of stock,
together with the profits earned, shall
equal the par value of each share or 5000,
when your mortgage would be cancelled
(or it can be paid up before due if you
should SO desire) We estimate that it
will take fifty six months to do this, al.
though the business of the association
has been 80 successful for the past six
teen months that if it so continues. it
will not take TO exceed forty-nine
months. But say it does take fifty six
months then you would have to pay S15
per month for f1fty-six months or total
of $40, making S240 interest on loan
of $500 for f1fty-six months or a trifle
less than nine per cent per annum inter
est for the use Of the money If you
choose to call it interest. The house is
then yours, you have paid les rate of
interest than you can get money of any
one else for in Aberdeen, your mortgage
is paid up and you do not have a 5000
mortgage to pay as you would at that
time should you borrow of any other
one loaning here. You have been pay
ing Sf5, no more. perhaps less, than you
would have paid per month rent for the
same. and take it all in you are Just
about the house ahead a the end of flf-
ty-six months.
Our association is aiding great many
to obtain homes. Or should you not
need to draw your money out under the
six per cent. interest plan or borrow
money of the association to build, then
continue to pay in SO per month per
share for the fiftysix months or less if
we reach the par point sooner, at which
time you have paid $112 per share or
less, and will be paid back 5000 in cash
for each share. Our association is aid
ing great many to save money. Build
ing associations are new thing and our
estimates are based on the experience of
a century during which time we have
yet to learn of single association which
has failed or one which has not proven a
profitable investment and genuine bene.
tit to its members We arc now issuing
our third series of stock. All are in.
vited to subscribe for as many shares as
wanted not to exceed fifty per member
You can take it as savings bank, rs an
Investment or as a means to provide a
home and stop payment of high rents.
We will make loans on business proper.
ty and in conservative amounts on build.
ings already built The aim Of ou1
association is to make Aberdeen larger
and richer, her men thrifty and indcpen-
dent, and their wives and children hap
py in homes of their own
i